Mohawk Industries to acquire Pergo for $150 million
Mohawk Industries has agreed to purchase laminate flooring manufacturer Pergo for $150 million in cash to bolster its presence in the U.S. and European markets.
Mohawk Industries has entered into a definitive agreement to acquire Pergo, a laminate flooring manufacturer, for $150 million in cash. The transaction is expected to close by the first quarter of 2013, subject to customary regulatory approvals and closing conditions.
Pergo reported sales of approximately $320 million in 2011 and maintains manufacturing operations in both Sweden and the United States. The acquisition is intended to integrate Pergo’s established DIY sales channel with Mohawk's existing distribution network.
CEO Jeffrey S. Lorberbaum noted that the acquisition will enhance the company’s patent portfolio and provide opportunities to optimize assets across both brands. Mohawk anticipates that the acquired business will be accretive to its earnings within the first year of operation.